The Islamic View on Service-Dominant Logic, Service Logic, and Customer-Dominant Logic

Introduction

The debates of the three concepts had begun since decades ago, related to the services that brought the academicians to develop a new dominant logic as the main reason for the exchange (Grönroos and Ravald 2010; Grönroos and Voima 2013; Vargo and Lusch 2004, 2008a, 2016). In a broader perspective, these are not only related to the services but marketing and consumer behavior as well. Thus, understanding those interrelated aspects are important to see their contribution to the theory and practices. Uniquely and certainly, the Islamic perspective on the logic or value creation becomes a newly exposed concept that could be compared with the existing literature or so called conventional view.

Dominant logic is defined as a general view of business that applies between dominant coalitions (Prahalad and Bettis 1996). It gives a series of propositions and fundamental perspectives from specific domains designed to guide the actors’ decision making. Each dominant logic offers a set of unique propositions (Vargo and Lusch 2004; Grönroos and Ravald 2010; Heinonen and Strandvik 2015), therefore the implementation of two or more different dominant logic for the similar set of events, will produce very different results (Allison, 1971).

The essence of the dominant logic is to focus on value co-creation, and to shift the unit of analysis from product to value co-creation (Vargo & Lusch, 2008b). Co-creation occurs when the actors (companies and consumers) interact in a meeting point of a service (Grönroos 2012; Grönroos & Voima 2013; Vargo & Lusch 2004, 2008a, 2010). This logic suggests that consumers and companies each allocate their resources. Vargo and Lusch (2010) underline the fact that not only that they provide input for customer value co-creation activities, but customers would do the same for the company. In the process of value co-creation from an S-L perspective, each customer and company contributes to the value creation during their interaction. The allocation of resources by actors (providers and beneficiaries) serves as a form of responsibility where these actors can create value together (FitzPatrick, et.al, 2015; Grӧnroos, 2012; Grӧnroos & Vioma, 2013; Vargo & Lusch 2008a, 2016).

The discussion on this dominant logic had started since the year 2004. Many scholars have given their views and attention in the discussion particularly when the value creation subject is brought forth as the research topic. In fact, it is found that 56,000 citations from 26,800 articles were reported by Google Scholar associated with Service-Dominant logic (SDL) by Vargo dan Lusch. Moreover, there are 1,593 documents/articles indexed by Scopus since the year 1983. Then the service-logic (S-L) by Grönroos and Ravald (2010); Grönroos and Voima (2013) comprised of arguments associating and confronting the arguments of SDL which also has 543 documents indexed by Scopus. Later, the newly argued topic is the customer-dominant logic (CDL) by Heinonen and Strandvik (2015); Heinonen et al. (2013) which has 42 articles indexed by Scopus. The reference to Scopus (as the world’s prominent index) is proof that these logic are imperative and significant, hence it was published in such high index profile. The fact is that the central to each of these logic is the focus on the co-creation of value and “shifting the unit of analysis from products to value creation” (Vargo and Lusch 2008b, p.4). The emergence of marketing logic offers some fresh perspectives to develop value creation and exchange in the market, such as SD Logic (Vargo & Lusch, 2004; 2008a; 2016), SL (Grönroos & Ravald, 2010; Grönroos & Voima, 2013), and CD Logic (Heinonen & Strandvik, 2015; Heinonen, Strandvik & Voima, 2013).